secured loan

grossettt

myself and my husband was sold a secured loan on the property we live in... only 1 name is actually on the mortgage, plus our property was grossly overvalued by the loan company.. we are now trapped with negative equity, and are unable to pay off the loan or move.. can any one help us!!

AMILLIONDOLLARS

Not without more details.

Who is the loan with, what was the amount borrowed, what APR are you tied into and did you take out PPI. What is the current value of the house.

AMD

Brock_and_Roll

Presumably you spent the secured loan on something.....

How were you planning to repay it?
Did you buy something with it which can be readily sold?

grossettt

Hi the loan is with GE Money, the amount borrowed was 40,000 and the apr is 10.35%. we took it out in april 2007, our house is valued at 130,000 at the moment,we never took out any ppi.the payments have gone up on numerous occasions. we asked for a settlement figure in september and was told it would be 45,000. We have write to them on numerous occasions with no joy, we also wrote to the financial ombudesman who couldn't help. when we took out the loan we was told our house was valued at £180,000, at a later date we spoke to a local estate agent who said our house would never have been worth that much.

So now we have a mortgage for £113,000 and a secured loan for £45,000 and a house worth at the max £130,000.
We feel we was mis-sold the loan and would like any advice as what we could do?

many thanks
Grossettt :mad:

grossettt

It was to pay off debts my ex-husband had left me with.

i was going to re-mortgage my house with my new partner to pay it off when he got divorced but the market dropped and the value of the house wasn't enough.

ILW

Why do you say you have been mis sold the loan?

grossettt

We believe that we was mis-sold because my husband is not on the mortgage anyway and the fact that they valued the house at an increased price that never was.

ILW

The valuation is irrelevent in that it is up to the bank how much they wish to check the security. If the loan is in both names and the property is only owned by one of you, there is a possibilty that they may not have a full charge, this is not much use if the property is in negative equity.
In the end, secured on not, you will still have to repay the loan.

grossettt

what do you mean by they may not have full charge?

ILW

The security on the loan may be suspect, but as the property is in negative equity, it is not worth much anyway.

Brock_and_Roll

Presumably if house prices had contined to go up then you would not be arguing that the loan was mis-sold.

I am afraid you have no hope of claiming the loan was mis-sold - house prices were of course higher at the time and presumably you were quite happy with the valuation when you agreed the loan. For what its worth, I had a secured loan from GE Money and it was a really painful experiences. You want to do everything you can to clear this debt first.